- Antitrust enforcers have been probing tech giant since 2019
- DOJ zeroes in on software, hardware limits that impede rivals
Antitrust enforcers allege that Apple has imposed software and hardware limitations on its iPhones and iPads to impede rivals from effectively competing, echoing concerns raised by
The Justice Department hopes to file a suit in the first quarter of the year, though that timing could slip, the people said, as the DOJ’s most senior antitrust officials haven’t yet signed off on the complaint. The agency has been probing the company since 2019, but chose to prioritize its twin cases against
An antitrust suit against Apple would be the culmination of years of work and mark the fourth case that US antitrust enforcers have pursued under the Biden administration’s crackdown on technology giants. The government is also pursuing cases against <-rte-company state="{"_id":"0000018d-18ba-de1f-adbf-1dfa1d8c0000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">Meta Platforms Inc-rte-company> and
The Justice Department and Apple declined to comment.
On Tuesday, the Supreme Court <-bsp-bb-link state="{"bbDocId":"S7CZC9T0AFB4","_id":"0000018d-18ba-de1f-adbf-1dfa1dd00000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">declined to hear appeals-bsp-bb-link> by Apple and Fortnite maker <-bsp-bb-link state="{"bbHref":"bbg://securities/748448Z%20US%20Equity","_id":"0000018d-18ba-de1f-adbf-1dfa1dd00001","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Epic Games Inc.-bsp-bb-link> related to an antitrust suit over the App Store, bringing the case to a conclusion. The trial judge in that case found Apple’s App Store rules don’t violate federal antitrust law. However, she ruled the company’s limits on developer communications violated California’s state antitrust law.
The Justice Department had weighed in at an earlier stage in the suit and was waiting for the high court’s decision before making its own move, the people said.
Enforcers have also been monitoring Apple’s moves in Europe as the bloc prepares to begin enforcing new digital gatekeeper rules on March 7. The new Digital Markets Act bars the most powerful tech firms from favoring their own services over those of rivals and companies must allow users to download apps from competing platforms. Apple’s App Store was designated as a service that falls under the law, though it’s appealing.
Apple said it expects to make changes to the App Store as a result of the bloc’s new rules despite the pending appeal.
Earlier: <-bsp-bb-link state="{"bbDocId":"S7DQ2TT1UM0W","_id":"0000018d-18ba-de1f-adbf-1dfa1dd10000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Apple to Allow Outside Payments for Apps After US Decision -bsp-bb-link>
Following the Supreme Court’s decision Tuesday, Apple said it will allow developers to use alternative payment systems, but charge a 27% fee for most digital purchases or 12% on subscriptions. Epic Games said it planned to contest Apple’s proposed remedy, saying the change was inadequate and would effectively prevent developers from reducing consumer prices.
The New York Times earlier reported on the Justice Department’s expected suit.
--With assistance from <-bsp-person state="{"_id":"0000018d-18ba-de1f-adbf-1dfa1dd20000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Mark Gurman-bsp-person>.
To contact the reporter on this story:
<-bsp-person state="{"_id":"0000018d-18ba-de1f-adbf-1dfa1dd40000","_type":"00000160-6f41-dae1-adf0-6ff519590003"}">Leah Nylen-bsp-person> in Washington at lnylen2@bloomberg.net
To contact the editors responsible for this story:
Nick Turner
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